N.J. woman who fraudulently obtained home mortgage used money to make ends meet, attorney says

Star-Ledger file photo A Sussex County woman who fraudulently obtained a $105,000 second mortgage loan on her mother’s home used the money to help her and her mother make ends meets, and pay their monthly bills, her attorney said

SUSSEX COUNTY — A Sussex County woman who fraudulently obtained a $105,000 second mortgage loan on her mother’s home used the money to help her and her mother make ends meets, and pay their monthly bills, her attorney said.

“There’s nothing to suggest she spent the money on anything extravagant. Unlike other cases like this, there’s nothing in the house to suggest that she spent the money on anything but household bills,” said public defender Steven Insley, who represents 47-year-old Dianne Butto-Sibilia.

Insley also said Butto-Sibilia has a history of both mental and physical health problems.

“This is a very, very sad case. It’s a very sad situation with her. In my opinion, she’s not a criminal and doesn’t belong in prison,” he said.

Butto-Sibilia, who lived with her 70-year-old mother in Hamburg, pleaded guilty last month in Newton to identity theft, perjury and theft, all third-degree crimes, before Superior Court Judge N. Peter Conforti.

Assistant Prosecutor Rachelle Jones said the crimes came to light after Butto-Sibilia told a judge during an eviction hearing last year that she didn’t know why their home was facing foreclosure.

A subsequent investigation led by Detective Douglas Porter of the prosecutor’s office found Butto-Sibilia had stolen the monthly mortgage payments given to her by her mother that were supposed to be sent to the bank. She also had forged her mother’s name and the name of an attorney on the application for the second mortgage loan, said Jones.

“The mom had no idea why the home was in foreclosure,” said Jones. “She (Butto-Sibilia) did the entire closing. She definitely had knowledge of real estate closings.”

Butto-Sibilia, former owner of Changing Times Professional Services, a Mount Arlington-based legal services firm, used about $30,000 of the $105,000 second mortgage loan to pay off the first mortgage and “basically spent the rest,” said Jones, adding the defendant didn’t spend the money on luxuries although she didn’t know specifically how the money was spent. She noted Butto-Sibilia has a history of health problems.

Butto-Sibilia is expected to be sentenced to 364 days in jail, a probationary term and be required to pay full restitution to her victims when she is sentenced Jan. 23, said Jones.